Americas Investigation Review of GIR in 2026
The practice of overstating or misrepresenting Artificial Intelligence (AI) capabilities, known as AI washing, is under increasing scrutiny by U.S. enforcement agencies. According to an analysis by White & Case's white collar team, published in the 2026 edition of the GIR Americas Investigations Review, federal agencies such as the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) are intensifying investigations and enforcement actions against companies making misleading or exaggerated AI claims.
The SEC treats materially false or misleading AI-related statements in corporate disclosures as potential violations under securities laws, particularly Section 10(b) and Rule 10b-5. This is especially true when internal documents contradict public AI claims or when market-moving AI announcements lack technological support. This has led to SEC investigations and shareholder class actions, mirroring patterns seen in recent ESG-related enforcement.
The FTC enforces against deceptive AI claims under Section 5 of the FTC Act. Its 2023 guidance, “Keep Your AI Claims in Check,” warns companies not to overstate AI capabilities or present unqualified or decontextualized performance claims. The FTC’s increased enforcement effort is exemplified by its law enforcement sweep called Operation AI Comply.
Federal courts have seen numerous AI washing lawsuits in various jurisdictions, including California, Delaware, New York, and New Jersey. While some cases have been dismissed on grounds such as statements being forward-looking or mere puffery, the volume and scope of enforcement actions indicate heightened regulatory vigilance.
Notably, scrutiny is not only limited to fraud and consumer protection claims but also includes potential criminal indictments for executives making false AI claims, as seen in U.S. Attorney’s Office actions in the Southern District of New York.
This enforcement attention is set against the backdrop of the U.S. government’s broader agenda to regulate and control AI technologies, including export controls and national security measures. However, the focus on AI washing is specifically tied to accuracy and transparency in corporate communications rather than technology export.
In summary, U.S. enforcement agencies are proactively scrutinizing and targeting AI washing as a significant white-collar risk, with enforcement combining securities fraud, consumer protection, and criminal investigations to hold companies accountable for false AI representations.
The 2026 edition of the GIR Americas Investigations Review, available at Global Investigations Review, provides an analysis of the corporate use of AI and related federal priorities. The publication is protected by copyright and can be downloaded as a PDF. It is important to note that this publication does not constitute legal advice.
White & Case's white collar team, led by Marietou Diouf, Robert DeNault, Joel M. Cohen, and Maria Beguiristain, specializes in areas including White Collar/Investigations, National Security, Artificial Intelligence (AI), Technology, North America, United States, Navigating Government Influence, Litigation, Financial Institutions, Economic Sanctions & Export Controls, and Consumer & Retail.
- White & Case's white collar team, led by Marietou Diouf, Robert DeNault, Joel M. Cohen, and Maria Beguiristain, offer services in areas such as White Collar/Investigations, National Security, Artificial Intelligence (AI), Technology, and Litigation.
- The SEC treats materially false or misleading AI-related statements in corporate disclosures as potential violations under securities laws, particularly Section 10(b) and Rule 10b-5.
- The FTC enforces against deceptive AI claims under Section 5 of the FTC Act and issued guidance in 2023 warning companies not to overstate AI capabilities or present unqualified or decontextualized performance claims.
- Federal courts have seen numerous AI washing lawsuits in various jurisdictions, including California, Delaware, New York, and New Jersey, with some cases being dismissed on grounds such as statements being forward-looking or mere puffery.
- U.S. enforcement agencies are proactively scrutinizing and targeting AI washing as a significant white-collar risk, with enforcement combining securities fraud, consumer protection, and criminal investigations to hold companies accountable for false AI representations.
- The focus on AI washing is specifically tied to accuracy and transparency in corporate communications rather than technology export, but the U.S. government’s broader agenda includes regulating and controlling AI technologies, including export controls and national security measures.
- The 2026 edition of the GIR Americas Investigations Review, available at Global Investigations Review, provides insights on the corporate use of AI and related federal priorities, but it does not constitute legal advice.
